Chartering whilst under a Temporary Import Entry in New Zealand

The owners of foreign owned and flagged private pleasure vessels arriving in New Zealand can apply for a Temporary Import Entry (TIE) on arrival in New Zealand, which, upon being granted, allow the foreign owner to cruise in New Zealand waters for up to 24 months from the date of arrival of the vessel in New Zealand. If the vessel does not depart New Zealand after the expiry of the 24-month period, duty and GST (and GST on the duty!) will become payable.

Foreign owned and flagged pleasure vessels can be offered for charter whilst sailing under a TIE. To do so, application must be made for an exemption from the requirement for the vessel to comply with New Zealand’s maritime operator safety system (MOSS). As a general rule of thumb, this process is expedited if the vessel has a commercial class notation with a reputable Class Society.

If approval is granted, the vessel can be used for commercial charter for up to 65% of the time that it is in New Zealand. As you would expect, there are GST implications that arise from the operation of the vessel whilst under charter, that may affect the ultimate beneficial owners of these vessels.

We regularly advise on these issues and have established relationships with tax and GST advisors that assist in these matters.

For further information on these processes, please contact Peter Dawson by email peter@maritimelaw.co.nz or phone +64 27 229 9624, or Renee Hunt by email renee@maritimelaw.co.nz or phone +64 21 743 123.